Answer:
Windsor, Inc.
Statement of Cash Flows
December 31, 2022
Cash flow from operating activities
Net income $108,206
Adjustments to net income $19,005
- Depreciation expense $32,550
- Loss on disposal of assets $5,250
- Increase in prepaid expenses ($1,680)
- Increase in accounts payable $24,290
- Increase in accounts receivable ($34,860)
- Increase in inventory ($6,755)
- Decrease in accrued expenses payable ($3,150)
<u> </u>
Total cash flow from operating activities $123,851
Cash flow from investing activities
Increase in long term investments ($20,300)
Purchase in new plant assets ($70,000)
Proceeds from disposal of assets $1,050
<u> </u>
Total cash flow from investing activities ($89,250)
Cash flow from financing activities
Issuance of common stocks $31,500
Payment of bonds payable ($25,200)
Dividends paid ($18,221)
<u> </u>
Total cash flow from financing activities ($11,921)
Total increase in cash $22,680
Cash balance December 31, 2021 $33,880
<u> </u>
Cash balance December 31, 2022 $56,560
Explanation:
2022 2021
Cash $56,560 $33,880 +22,680
Accounts receivable 61,460 26,600 +34,860
Inventory 78,750 71,995 +6,755
Prepaid expenses 19,880 18,200 +1,680
Long-term investments 96,600 76,300 +20,300
Plant assets 199,500 169,750 +29,750
Accumulated depreciation (35,000) (36,400) -1,400
Total $477,750 $360,325
Liabilities and Stockholders' Equity
Accounts payable $71,400 47,110 +24,290
Accrued expenses payable 11,550 14,700 -3,150
Bonds payable 77,000 102,200 -25,200
Common stock 154,000 122,500 +31,500
Retained earnings 163,800 73,815 +89,985
Total $477,750 $360,325
Depreciation expense 32,550
Interest expense 3,311
Loss on disposal of plant assets 5,250
Net income $108,206
cash dividend of $18,221
